# DDP, Delivered Duty Paid (Incoterms 2020)

DDP (Delivered Duty Paid) means the seller delivers the goods to the named destination cleared for import, paying transport, import duties and taxes such as VAT; risk passes when the goods are ready for unloading there, and the buyer unloads. It is the most the seller can take on, and works for any mode.

- Transport: any mode
- Delivery and risk transfer: At the named place of destination, cleared for import, on the arriving means of transport ready for unloading.
- Seller's costs run to: Arrived at destination plus import clearance, duties and taxes

## Responsibilities

| Job | Who |
|---|---|
| Export clearance | Seller |
| Loading at origin | Seller |
| Main carriage | Seller |
| Insurance | No obligation |
| Unloading at destination | Buyer |
| Import clearance and duties | Seller, incl. duties and taxes |

## Common mistakes

- **Seller pays import duties and taxes** The seller pays duties and import VAT or GST in the buyer's country, and may need to register there. If it cannot recover that VAT, it is a straight cost.
- **Importer of record** Some countries do not let a foreign seller act as importer. Check this before agreeing DDP; DAP is often the safer choice.
- **Unloading** Unloading is still the buyer's job under DDP.

## DDP or DAP?

DAP leaves import clearance, duties and taxes with the buyer.

Incoterms® is a trademark of the International Chamber of Commerce; CartonMath is not affiliated with the ICC.

## FAQ

**What does DDP mean?**
DDP (Delivered Duty Paid) means the seller delivers the goods to the named destination cleared for import, paying transport, import duties and taxes such as VAT; risk passes when the goods are ready for unloading there, and the buyer unloads. It is the most the seller can take on, and works for any mode.

**When does risk pass under DDP?**
At the named place of destination, cleared for import, on the arriving means of transport ready for unloading.

**Who pays the main freight under DDP?**
The seller arranges and pays the main carriage.

**Who pays import duties under DDP?**
The seller pays import duties and taxes under DDP.

**Can DDP be used for container shipments?**
Yes. DDP works for any mode of transport, including containers and multimodal shipments.

Source page: https://cartonmath.com/incoterms/ddp/
Updated: 2026-10-06
Publisher: CartonMath (https://cartonmath.com)